Page 19 - AfrOil Week 02 2021

AfrOil NEWS IN BRIEF AfrOil

This basin is of the same age (Permian) as the December 31, 2020, decreased 8.6% to 57.7mn ORC.A and ORC.B.
Kavango and has produced from low-cost con- cubic feet (1.634mn cubic metres) per day, com- Orca Energy Group, January 08 2021
ventional reservoirs since the 1930s, the same pared to 63.1 mcf (1.787 mcm) per day for the
targets ReconAfrica is pursuing. year ended December 31, 2019, and for Q4-2020
ReconAfrica, January 06 2021 decreased 11.3% to 62.8 mcf (1.778 mcm) per INVESTMENT
day compared to 70.8 mcf (2.005 mcm) per day
for Q4-2019. Reduced gas sales in 2020 were Zenith Energy announces
SERVICES primarily attributed to the impact of the coro-
navirus pandemic on consumer investment/ cooperation agreement for
Bonga Main FPSO demand and abnormally high rainfall in early new acquisitions in MENA
2020 which reduced gas fired power demand due
gets offshore topside to increased hydro power generation. Zenith Energy, the listed international oil
Revenue decreased 10.4% to $76.7mn, com-
compressors from TMC pared to $85.6mn in the year ended December and gas production company focused on pur-
31, 2019, and for Q4-2020 decreased 10.3% to suing African development opportunities, has
TMC Compressors has been contracted to sup- $20.8mn compared to $23.2mn in Q4-2019. entered into a co-operation agreement (CA)
ply a complete offshore topside compressed air Cash and short-term investments totaled with Fleet Oil & Gas, a privately owned oil and
system to the Bonga Main FPSO. $103.8mn on December 31, 2020, compared to gas company led by the former Egyptian Petro-
TMC will deliver an offshore compressed $138.7mn at December 31, 2019. The decrease leum Minister, Mahmoud Latif Amer. Fleet is
air system consisting of three large compressors is primarily due to the substantial issuer bid of headquartered in Dubai, United Arab Emirates
and control system to the Bonga Main FPSO CAD50mn completed in Q1-2020. and has a representative office in Cairo, Egypt.
(floating, production, storage and offloading As at December 31, 2020, the current receiva- The purpose of the CA is to jointly identity and
vessel), which is located 120 km southwest of the ble from Tanzanian Electricity Supply Company pursue oil and gas production and exploration
Niger Delta, in a water depth of more than 1,000 (TANESCO) was zero (December 31, 2019: acquisitions in the Mediterranean, the Middle
metres. zero). The TANESCO long-term trade receiva- East and Africa.
The three large compressors will be retro- ble as at December 31, 2020, was $27.6mn, with Under the terms of the CA, Zenith and Fleet
fitted onboard the Bonga Main FPSO, which a provision of $27.6mn compared to $47.5mn will jointly identify certain potential acquisition
became operational in 2005 and is operated by (provision of $47.5mn) as at December 31, 2019. opportunities and conduct due diligence on
Shell Nigeria Exploration and Production Co. Capital expenditures for the year ended any transaction that is deemed to be a suitable
(SNEPCo). TMC has not disclosed the value of December 31, 2020 were $27.0mn, which potential acquisition. If a Potential Acquisition
the contract. included an advance payment of $11.4mn for the is mutually approved and taken forward follow-
“Our offshore compressed air systems have procurement of long lead items of the compres- ing the completion of a satisfactory due diligence
been designed solely for marine and offshore sion project, compared to $5.8mn for the year exercise, the Parties have agreed to enter into a
use, which is why they are favoured by FPSO ended December 31, 2019. joint venture agreement to be made by way of a
operators who do not wish to rely on sending The total value for the contract for the newly incorporated vehicle, which will be sub-
service technicians offshore. Our compressors compression project signed in August 2020 is ject to a separate agreement at the time.
are designed so the vessel crew can maintain $38.0mn, of which $24.7mn has been incurred The Company is pleased to confirm that the
them on their own, alternatively in combination to date. The expenditures in 2019 were primarily Parties are reviewing Potential Acquisitions,
with online support from us,” says Hans Petter related to the refrigeration project for the Songas both operated and non-operated, with a produc-
Tanum, TMC’s director of sales and business gas processing plant. tion rate above 2,000 barrels per day (bpd) of oil.
development. Jay Lyons, interim Chief Executive Officer, Andrea Cattaneo, Chief Executive Officer
The Bonga Main FPSO has a capacity of commented: “Considering the difficult opera- of Zenith, commented: “I am delighted to have
225,000 bpd of oil and weighs more than 300,000 tional context deriving from the global impact started this cooperation with Fleet at a particu-
metric tonnes. of the coronavirus pandemic and its knock-on larly exciting juncture in our development in
TMC is a global supplier of compressed air implications on the domestic operating envi- Africa. Fleet has significant expertise in iden-
systems for marine and offshore use. The com- ronment, I am pleased with the performance of tifying highly attractive oil and gas projects, as
pany is headquartered in Oslo, Norway. our Company during 2020. We continue to pro- well as having an impressive network of high-
TMC Compressors, January 11 2021 gress our strategy to focus on the Tanzanian gas level contacts across the region. We are already
business while providing return of capital to our at advanced stage of cooperation with the Fleet
shareholders through quarterly dividends and team to jointly progress a number of compelling
PERFORMANCE share buy backs. We maintain focus on the com- opportunities to enhance our portfolio, as well
pression project for the Songas gas-processing as exploring potential project financing from
Orca Energy Group plant as evidenced by the level of capital incurred certain Middle Eastern financial institutions for
on this project in 2020. The project remains on our intended operational activities during 2021.”
announces preliminary budget and on track for completion in 2022 and Essam Kafafi, Chief Executive Officer of
we look forward to keeping the market updated Fleet, commented: “Fleet Oil and Gas is proud
results for 2020 on our wider progress over the coming months.” to announce its collaboration with Zenith, a
Orca is an international public company definitive step towards expanding our oil and gas
Orca Energy Group Inc. announces its prelim- engaged in natural gas development and supply offerings in the region. I am confident this co-op-
inary unaudited financial and operating results in Tanzania through its subsidiary PanAfrican eration will help us as we continue to strengthen
for 2020. For the year ended December 31, 2020: Energy Tanzania Ltd. Orca trades on the TSX and grow our position and capabilities.”
Average sales volumes for the year ended Venture Exchange under the trading symbols Zenith Energy, January 11 2021

Week 02 13•January•2021 www. NEWSBASE .com P19